HC Deb 14 July 2003 vol 409 cc133-5W
Mr. Edward Davey

To ask the Chancellor of the Exchequer if he will estimate the yield from an increase in income tax on all taxable income below(a) £100,000 and (b) £50,000 of (i) 1p, (ii) 2p, (iii) 3p and (iv) 4p in (A) the current financial year and (B) 2004–05. [125275]

Dawn Primarolo

The information is given in the table.

£ billion
Increase in all rates of income tax Yield from increase in income tax on all taxable income
(A) 2003–04 (B) 2004–05
(a) taxable income below £100,000
(i) 1p 4.7 5.0
(ii) 2p 9.4 10.0
(iii) 3p 14.1 15.0
(iv) 4p 18.8 20.0
(b) taxable income below £50,000
(i) 1p 4.4 4.7
(ii) 2p 8.8 9.4
(iii) 3p 13.2 14.1
(iv) 4p 17.6 18.8

The estimates are based on the Survey of Personal Incomes and are consistent with the April 2003 Budget.

All the figures shown are the estimated direct effects of tax changes on tax revenues. In practice, tax changes will themselves effect taxpayer behaviour and economic variables, which in turn will have further effects on tax revenues.

Mr. Edward Davey

To ask the Chancellor of the Exchequer if he will estimate the yield from an increase in income tax on all taxable income from earnings only of(a) 1p, (b) 2p, (c) 3p and (d) 4p in (i) the current financial year and (ii) 2004–05. [125276]

Dawn Primarolo

The information is given in the table.

£ billion
Increase in starting rate, basic rate and higher rate of income tax on earnings Yield from increase in income tax on all taxable income from earnings
(i) 2003–04 (ii) 2004–05
(a) 1p 4.8 5.1
(b) 2p 9.6 10.2
(c) 3p 14.4 15.3
(d) 4p 19.2 20.4

The estimates are based on the Survey of Personal Incomes and are consistent with the April 2003 Budget.

All the figures shown are the estimated direct effects of tax changes on tax revenues. In practice, tax changes will themselves effect taxpayer behaviour and economic variables, which in turn will have further effects on tax revenues.

Mr. Edward Davey

To ask the Chancellor of the Exchequer if he will estimate the yield from an increase in income tax on all taxable income from earnings only below(a) £100,000 and (b) £50,000 of (i) 1p, (ii) 2p, (iii) 3p and (iv) 4p in (A) the current financial year and (B) 2004–05. [125277]

Dawn Primarolo

The information is given in the following table.

Increase in income tax rates on earned income Yield from increase in income tax rates on earned income (£ billion)
(A) 2003–04 (B) 2004–05
(a) Total earnings below £100,000
(i) 1p 4.4 4.7
(ii) 2p 8.8 9.4
(iii) 3p 13.2 14.1
(iv) 4p 17.6 18.8
(b) Total earnings below £50,000
(i) 1p 4.1 4.4
(ii) 2p 8.2 8.8
(iii) 3p 12.3 13.2
(iv) 4p 16.4 17.6

The estimates are based on the Survey of Personal Incomes and are consistent with the April 2003 Budget.

All the figures shown are the estimated direct effects of tax changes on tax revenues. In practice, tax changes will themselves effect taxpayer behaviour and economic variables, which in turn will have further effects on tax revenues.

Mr. Edward Davey

To ask the Chancellor of the Exchequer (1) if he will estimate the yield from an increase in income tax on all taxable income of(a) 1p, (b) 2p, (c) 3p and (d) 4p in (i) the current financial year and (ii) 2004–05; [125288]

(2) if he will estimate the yield from an increase in the base rate of income tax of (a) 1p, (b) 2p, (c) 3p and (d) 4p in (i) the current financial year and (ii) 2004–05. [125289]

Dawn Primarolo

I refer the hon. Member to table 1.6 on the Inland Revenue website www.inlandrevenue. gov.uk/stats/tax_expenditures/g_t06_1.htm.

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